Notes to Accounts of Sarthak Industries Ltd.

Mar 31, 2025

xv. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when there is a present legal or constructive obligation as a result of past events and it is probable that an
outflow of resources embodying economic benefits will be required to settle the obligation and the amount can be reliably estimated.
Provisions are not recognized for future operating losses.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non¬
occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be required to settle the obligation, or the amount of the obligation cannot be
measured with sufficient reliability. The Company does not recognize a contingent liability but discloses its existence in the financial
statements

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events not wholly within the control of the Company. Contingent assets are not recognized,
but its existence is disclosed in the financial statements

xvi. Segment Accounting

The company has disclosed business segment as the primary segment. Based on the criteria mentioned in Ind AS 108 “Operating
Segment” the company has identified its reportable segments. The Chief Operating Decision Maker (CODM) evaluates the company''s
performance and allocates resources based on an analysis of various performance indicators by operating segments. The CODM
reviews revenue and gross profit as performance indicator for all of the operating segments. The various segment identified by the
company comprised as under:

Name of Segment

LPG Cylinders - Manufacturing and repairing of LPG cylinders
Merchant Trading - Trading of various commodities, materials etc.

By products related to each segment have been included in respective segment.

Segment revenue, segment results, segment assets and segment liabilities include respective amounts directly identified with the
segment and also an allocation on reasonable basis of amounts not directly identified. The expenses which are not directly relatable to
the business segment are shown as unallocable corporate cost. Assets and liabilities that can not be allocated are shown as unallocable
corporate assets and liabilities respectively.

xvii. Leases
Company as a lessor

At the inception of the lease the Company classifies each of its leases as either an operating lease or a finance lease. The Company
recognises lease payments received under operating leases as income on a straight-line basis over the lease term. In case of a finance
lease, finance income is recognised over the lease term based on a pattern reflecting a constant periodic rate of return on the lessor''s net
investment in the lease. If an arrangement contains lease and non-lease components, the Company applies Ind AS 115 Revenue from
contracts with customers to allocate the consideration in the contract.

xviii. Impairment of Non-Financial Assets

The company assesses at each reporting date whether there is any objective evidence that a non-financial asset or a group of non¬
financial assets are impaired. If any such indication exists, the company estimates the amount of impairment loss.

For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from continuing use that
are largely independent of the cash inflows from other assets or group of assets is considered as cash generating unit.

An impairment loss is calculated as the difference between an asset''s carrying amount and recoverable amount. Losses are recognized
in statement of profit and loss and reflected in an allowance account. When the company considers that there are no realistic prospects of
recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease
can be related objectively to an event occurring after the impairment was recognized, then the previously recognized impairment loss is
reversed through profit or loss.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised
estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been
in place had there been no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an
impairment loss is recognized immediately in Statement of Profit and Loss, taking into account the normal depreciation/amortization.

xix. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another
entity. Financial instruments also include derivative contracts such as foreign currency foreign exchange forward contracts, interest rate
swaps and currency options; and embedded derivatives in the host contract.

a. Financial assets
Classification

The Company classifies financial assets in the following measurement categories :

i. Those measured at amortised cost and

ii. Those measured subsequently at fair value through other comprehensive income or fair value through profit or loss on the basis of
its business model for managing the financial assets and the contractual cash flow characteristics of the financial asset.

Initial recognition and measurement

All financial assets are recognised initially at fair value. Transaction costs that are attributable to the acquisition of the financial asset are
adjusted to the fair value, in the case of financial assets not recorded at fair value through profit or loss. Purchases or sales of financial
assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades)
are recognised on the trade date, i.e., the date that the company commits to purchase or sell the asset.

Measured at amortised cost

A financial asset is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the
principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR)
method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortisation is included in finance income in the statement of profit and loss. The losses arising from impairment
are recognised in the statement of profit and loss. This category generally applies to trade and other receivables.

Measured at fair value through other comprehensive income (FVOCI)

A financial asset is measured at FVOCI if both of the following criteria are met:

a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

b) The asset''s contractual cash flows represent SPPI.

Financial assets included within the FVOCI category are measured initially as well as at each reporting date at fair value. Fair value
movements are recognized in the other comprehensive income (OCI). However, the company recognizes interest income, impairment
losses & reversals and foreign exchange gain or loss in the profit and loss. On derecognition of the asset, cumulative gain or loss
previously recognised in OCI is reclassified from the equity to profit and loss. Interest earned whilst holding FVOCI debt instrument is
reported as interest income using the EIR method.

Financial Asset at fair value through profit and loss (FVTPL)

FVTPL is a residual category for financial asset. Any financial asset, which does not meet the criteria for categorization as at amortized
cost or as FVOCI, is classified as at FVTPL.

In addition, the group company may elect to classify a financial asset, which otherwise meets amortized cost or FVOCI criteria, as at
FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to
as ''accounting mismatch'').

Financial assets included within the FVTPL category are measured at fair value with all changes recognized in the profit and loss.
Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a company of similar financial assets) is primarily derecognised
(i.e. removed from the company''s balance sheet) when:

a. The rights to receive cash flows from the asset have expired, or

b. The company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash
flows in full without material delay to a third party under a ''pass-through'' arrangement; and either (a) the company has transferred
substantially all the risks and rewards of the asset, or (b) the company has neither transferred nor retained substantially all the risks and
rewards of the asset, but has transferred control of the asset.

c. When the company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it
evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained
substantially all of the risks and rewards of the asset, nor transferred control of the asset, the company continues to recognise the
transferred asset to the extent of the company''s continuing involvement. In that case, the company also recognises an associated
liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the
company has retained.

d. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying
amount of the asset and the maximum amount of consideration that the company could be required to repay.

Impairment of financial assets

In accordance with Ind-AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment
loss on the following financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits, and bank
balance.

b) Trade receivables.

The Company follows ‘simplified approach'' for recognition of impairment loss allowance on:

i. Trade receivables which do not contain a significant financing component.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises
impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

ii. For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there
has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month
ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a
subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk
since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.

b. Financial liabilities
Classification

The Company classifies all financial liabilities as subsequently measured at amortised cost, except for financial liabilities at fair value
through profit or loss. Such liabilities, including derivatives that are liabilities, shall be subsequently measured at fair value.

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss or amortised costs.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable
transaction costs.

The company''s financial liabilities include trade and other payables, loans and borrowings, financial guarantee contracts and derivative
financial instruments.

Financial liabilities at fair value through profit or loss.

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon
initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the
purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the group that are
not designated as hedging instruments in hedge relationships as defined by Ind-AS 109. Separated embedded derivatives are also
classified as held for trading unless they are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition,
and only if the criteria in Ind-AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in
own credit risk are recognized in OCI. These gains/loss are not subsequently transferred to P&L. However, the company may transfer the
cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method.
Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of
the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

This category generally applies to interest-bearing loans and borrowings.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial
liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The
difference in the respective carrying amounts is recognised in the statement of profit or loss.

Derivative financial instruments

The company uses derivative financial instruments, such as forward currency contracts, interest rate swaps and forward commodity
contracts, to hedge its foreign currency risks, interest rate risks and commodity price risks, respectively. Such derivative financial
instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re¬
measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair
value is negative.

Offsetting

Financial assets and financial liabilities are offset and the net amount is presented in the balance sheet when,and when the company has
a legally enforceable right to set off the amount and it intends either to settle then an a net basis or to realize the asset and settle the
liability simultaneously.

Measurement of fair values

The Company''s accounting policies and disclosures require the measurement of fair values, for financial instruments.

The Company has an established control framework with respect to the measurement of fair values. The management regularly reviews
significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to
measure fair values, then the management assesses the evidence obtained from the third parties to support the conclusion that such
valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which such valuations should be classified.
When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. Fair values are
categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value
measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the
entire measurement.

The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change
has occurred.

C. Recent Accounting Pronouncement

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. For the year ended March 31,2025, MCA has notified Ind AS - 117 Insurance
Contract and amendments to Ind AS - 116 Leases, relating to sale and leaseback transactions, these are effective from period beginning
on or after 1st April, 2024. The company has reviewed the new pronouncements and based on its evaluation has determined that it has
no impact on the company''s financial position.

Note :

a. Term loan of Rs. 9.47 lacs taken from HDFC Bank Ltd. and term loan of Rs. 117 lacs taken from Daimler financial Services Pvt. Ltd. for
purchase of vehicles. These loans are secured by exclusive first charge on the vehicle purchased through loan.

Above term loans are repayable as under:

(i) Term loan from HDFC Bank Ltd. - Sanctioned amount Rs 30.00 lacs outstanding Rs. NIL lacs (Previous Year Rs. 6.49 lacs) is
repayable in 60 monthly installments (EMI) of Rs. 0.62 lacs (including Interest) commencing from March, 2020 and last installment is due
in the month of February, 2025. Rate of interest as at the year end 8.55% p.a. (Previous Year 8.55% P.A).

(ii) Term loan from HDFC Bank Ltd. - Sanctioned amount Rs 9.47 lacs outstanding Rs.3.56 lacs (Previous Year Rs. 5.49 Lacs) is
repayable in 60 monthly installments (EMI) of Rs. 0.19 lacs (including Interest) commencing from December, 2021 and last installment is
due in the month of November, 2026. Rate of interest as at the year end 7.50% p.a. (Previous Year 7.50% P.A.).

(iii) Term loan from Daimler Financial Services Pvt. Ltd. - Sanctioned amount Rs 62.00 lacs outstanding Rs.38.77 lacs (Previous Year
Rs.46.09 lacs) is repayable in 60 monthly installments (EMI) of Rs. 0.90 lacs (including Interest) commencing from October, 2021 and
last installment is due in the month of September, 2026. Rate of interest as at the year end 8.27% p.a. (Previous Year 8.27% P.A.)

B. Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. Nil (Previous Year Rs. Nil).

35 A- The Company has been sanctioned non fund based credit facilities of Rs. 1100 lacs by Punjab National Bank Limited and Rs. 500
lacs by HDFC Bank Ltd. Non fund based facilities are secured by hypothecation of entire current assets of the Company present and
future, and further secured by -

- Hypothecation charge over all movables assets, equipments and fixtures of the company located at the Company''s plant at
Village Akolia, Pithampur, Distt. Dhar, (M.P.).

- 10% cash margin in the form of term deposit receipts.

- Equitable mortgage created in favour of PNB and parri passu basis with HDFC Bank Ltd on Company''s plant situated at Village
Akolia, Pithampur, Distt. Dhar, (M.P.).

- Personal guarantee of others.

B- The Company has been sanctioned non fund based / fund based credit facilities of Rs. 1900 lacs by Uco Bank are secured by
hypothecation of entire current assets of the Company present and future, and further secured by -

- Equitable mortgage on Plot no 411 & 412 owned by Vishal Resorts and Hotel Pvt Ltd located at Ruchi Lfescapes Townhsip
Village Jhalariya Dist Indore MP

- 10-15% cash margin in the form of term deposit receipts.

- Personal guarantee of others.

36 Leases:

Company as a lessee

i) Amount not included in measurement of lease liability and recognized as expenses in the statement of profit and loss during the

year as Rs 23.61 lacs (Previous Year Rs 8.07 lacs).

ii) Total cash outflow for short term leases amount Rs. 23.44 lacs during the year (Previous Year Rs. 8.37 lacs)

The company has adopted Ind AS 116 ''Leases'' effective from April 1,2019 and elect not to apply the requirement of Ind AS 116 since
leases are short term leases.

Where company is lessor

The building given on cancellable operating lease are included in Property, Plant and Equipment.

The aggregate amount of operating lease income recognized in the Statement of Profit and Loss is Rs. 18.00 lacs (Previous Year
Rs. 18.00 lacs).

37 Employee Benefit :

(A) Defined contribution plans

In respect of defined contribution plans, an amount of Rs. 3.78 lacs (Previous Year: Rs. 4.29 lacs) towards employer contribution to
provident fund and Rs. 0.63 lacs (Previous Year : Rs. 0.83 lacs) towards employer contribution to ESIC and admin. charges in
respect of PF Rs. 0.15 lacs (Previous Year : Rs. 0.20 lacs) have been recognised in the statement of profit and loss for the year.

(B) Defined benefit plans

The company provides for gratuity for its employees as per the Payment of Gratuity Act 1972. Employees who are in continuous
service for a period of 5 years are eligible for gratuity. The Company has opted for scheme with Life Insurance Corporation of India(
"LIC" ) to cover its liabilities towards employees gratuity. The Company also carries out Actuarial valuation of gratuity using Projected
Unit Credit Method as required by Ind As - 19 and the difference between fair value of plan assets and liability as per actuarial
valuation as at the year end is recognised in financial staetement as assets / liabilities.

48 Financial risk management objectives and policies

In its ordinary operations, the companies activities expose it to the various types of risks, which are associated with the financial
instruments and markets in which it operates. The company has a risk management policy which covers the foreign exchanges
risks and other risks associated with the financial assets and liabilities such as interest rate risks and credit risks. The risk
management policy is approved by the board of directors. The following is the summary of the main risks:

a) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates (currency risk) and interest rates (interest rate
risk), will affect the companies income or value of it''s holding of financial instruments. The objective of market risk management is to
manage and control market risk exposures within acceptable parameters, while optimising the return.

i) Interest rate risk

Interest rate risk is the risk the fair value or future cash flow of a financial instrument will fluctuate because of changes in market
interest rate. Fair value interest rate risk is the risk of changes in fair value of fixed interest bearing financial instrument because of
fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing financial
instrument will fluctuate because of fluctuations in the interest rates.

The Company''s exposure to the risk of changes in market interest rates relates primarily to the borrowing from banks and others.
Currently company is not using any mitigating factor to cover the interest rate risk.

(b) Credit risk

Credit risk is the risk that arises from the possibility that the counterparty will not meet its obligations under a financial instrument or
customer contract, leading to a financial loss. Financial assets that are subject to such risk, principally consist of trade receivables,
Investments and loans and advances. None of the financial insturments of the company results in material concentration of credit risk.
Financial assets are written off when there is no reasonable expectation of recovery, however, the Company continues to attempt to
recover the receivables. Where recoveries are made, these are recognised in the Statement of Profit and Loss. The impairment for
financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these
assumptions and selecting the inputs to the impairment calculation, based on the Company''s past history, existing market conditions as
well as forward looking estimates at the end of each balance sheet date.

Trade and other receivables

To Manage trade and other receivables, the company periodically assesses the financial reliability of customers, taking in to account the
financial conditions, economic trends, analysis to historical bad debts and ageing of such receivables.

Investments

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counter-parties that have a good
credit rating. The Company does not expect any losses from non-performance by these counter-parties apart from those already given in
financials, and does not have any significant concentration of exposures to specific industry sectors or specific country risks."

Cash & Cash Equivalents

The Company holds cash & cash equivalents with credit worthy banks of Rs. 594.17 lacs as at 31^st March, 2025 (Rs.193.18 lacs as at 31^st
March, 2024). The credit worthiness of such banks is evaluated by the management on an ongoing basis and is considered to be good.

(c) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company has obtained
non-fund based working capital line from bank. The company''s treasury department is responsible for liquidity, funding as well as
settlement management. In addition, process and policies related to such risk are overseen by senior management. Management
moniters the company''s net liquidity position through rolling forecasts on the basis of expected cash flows.

Expected contractual maturity for derivative and non derivative Financial Liabilities:

52 The provisions related to Corporate Social Responsibility (CSR) under section 135 of the Companies Act, 2013 and rules
made thereunder are not applicable to the Company.

53 Company has given advances of Rs. 31.50 lacs to two parties in earlier year for acquisition of land. But acquisition could not be
completed, agreement for the same still pending and discussion is under progress forthe same and will be settled in short time.

54 Other liablities includes Rs. 752.12 Lacs related to Advance received from M/s Samchira DMCC, UAE agaist Export in the earlier
years but export could not be executed and still pending.

55 Additional Regulatory Information

i. The company has not granted Loans orAdvances in the nature of loans to promoters, directors, KMPs and the related parties (as
defined under Companies Act, 2013,) either severally or jointly with any other person, that are: (a) repayable on demand or (b)
without specifying any terms or period of repayment.

ii. The company neither have any Benami property nor any proceedings have been initiated or pending against the company for
holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

iii. The company is not declared wilful defaulter by any bankorfinancial Institution or other lender.

iv. The company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956.

v. The company has not made any investments till 31“ March, 2025 in subsidiary company hence compliance with the number of
layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is
not applicable.

vi. (A) The company has not advanced or loaned or invested funds (either borrowed funds or share premium orany othersources or
kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether
recorded in writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee, security
ortheliketooron behalf of the Ultimate Beneficiaries; (B) The company has not received any fund from any person(s) or entity(ies),
including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding
Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries."

vii. The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey orany other
relevant provisions of the Income TaxAct, 1961).

viii. The Company has not traded or invested in Crypto currency orVirtual Currency during the financial year.

ix. The Company has borrowings from banks or financial institutions on the basis of security of current assets.Quarterly returns or
statements of current assets filed by the Company with banks orfinancial institutions are in agreement with the books of accounts.

x. There were no registration of charge orsatisfaction of charge is pending for registration with ROC.

As per our report of even date For and on behalf of the Board of Directors

For Ashok Khasgiwala & Co. LLP
Chartered Accountants

(FRN 000743C/C400037) Ajay Peshkar Nimishek Ved

Whole Time Director Director

DIN: 03094090 DIN: 07362817

CA Ashok Khasgiwala
Partner

M. No. : 070288 CS Riya Bhandari CA Om Prakash Mundra

Place : Indore Company Secretary Chief Financial Officer

Date -29.05.2025

---

Mar 31, 2024

16.2 Rights, preferences and restrictions attached to Equity shares : The company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share. The dividend if any, proposed by the Board of Directors is subject to the approval of shareholders in the ensuing annual general meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

16.5 During the period of 5 years immediately preceding 31“ March, 2024 :-

a. the company has not allotted any shares pursuant to contract(s) without payment being received in cash

b. bought back any shares

c. agreegate no. of equity shares allotted as fully paid up by way of bonus Shares during the year 2022-23 in the ratio of 1 (One) Equity Share for every 3 (Three) existing Equity Shares are 23,22,950

Nature and purpose of Reserves General Reserve

The general reserve is created from time to time on transfer of profit from retained earnings. General reserve is created by transfer from one component of equity to another and is not an item of other comprehensive income, items included in general reserve will not be reclassified subsequently to profit and loss.

Capital reserve

Capital reserve was created out of forfeiture of partly paid equity shares of the company on account of unpaid calls. Reserve can be utilised as per the provisions of the Companies Act, 2013.

Security Premium

Security premium is created on recording of premium on issue of shares. The reserve can be utilised in accordance with the provision of the Companies Act, 2013.

Equity Instrument through Other Comprehensive Income

The Company has elected to recognise changes in fair value of equity instrument (investments) in other comprehensive income. The fair value changes are accumulated within this reserve and shall be adjusted on derecognition of investments.

Retained Earnings

The same is created out of profit over years and shall be utilised as per the provisions of the Companies Act, 2013.

Note :

a. Term loan of Rs. 39.47 lacs taken from HDFC Bank Ltd. and term loan of Rs. 117 lacs taken from Daimler financial Services Pvt. Ltd. for purchase of vehicles. These loans are secured by exclusive first charge on the vehicle purchased through loan.

Above term loans are repayable as under:

(i) Term loan from HDFC bank Ltd. - Sanctioned amount Rs 30.00 lacs outstanding Rs. 6.49 lacs (Previous Year Rs. 13.03 lacs) is repayable in 60 monthly installments (EMI) of Rs. 0.62 lacs (including Interest) commencing from March, 2020 and last installment is due in the month of February, 2025. Rate of interest as at the year end 8.55% p.a. (Previous Year 8.55% P.A).

(ii) Term loan from HDFC Bank ltd. - Sanctioned amount Rs 9.47 lacs outstanding Rs.5.49 lacs (Previous Year Rs. 7.28 Lacs) is repayable in 60 monthly installments (EMI) of Rs. 0.19 lacs (including Interest) commencing from December, 2021 and last installment is due in the month of November, 2026. Rate of interest as at the year end 7.50% p.a. (Previous Year 7.50% P.A.).

(iii) Term loan from Daimler Financial Services Pvt. Ltd. - Sanctioned amount Rs 55.00 lacs outstanding Rs. NIL(Previous Year Rs. 10.04 lacs) is repayable in 36 monthly installments (EMI) of Rs. 1.72 lacs (including Interest) commencing from October, 2020 and last installment was due in the month of September, 2023. Rate of interest as at the year end 8.00% p.a. (Previous Year 8.00% PA).

(iv) Term loan from Daimler Financial Services Pvt. Ltd. - Sanctioned amount Rs 62.00 lacs outstanding Rs.46.09 lacs (Previous Year Rs.52.74 lacs) is repayable in 60 monthly installments (EMI) of Rs. 0.90 lacs (including Interest) commencing from October, 2021 and last installment is due in the month of September, 2026. Rate of interest as at the year end 8.27% p.a. (Previous Year 8.27% P.A.)

34. Contingent Liabilities and Commitments		(Amount '' in lacs)
Particulars	As at 31st March, 2024	As at 31st March, 2023
A Contingent Liabilities
a) Estimated amount of claims against the Company not acknowledged as debts in respect of: - Income tax demand disputed in appeals - Sales Tax, VAT Demand disputed in appeals - Other Matter in Appeals (Amount deposited Rs. 171.40 lacs (Previous Year Rs. 157.35 lacs)	709.22 2626.85 19.49	709.22 2626.85 19.49

1) The company does not expect any reimbursements in respect of the above contingent liabilities.

2) It is not practicable to estimate the timing of cash outflows if any is respect of above matters due to pending resolution of the arbitration/appellate proceedings further the liability mentioned in to above includes interest expect in cases where the company has determined that the possibility of such levy is remote.

B Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. Nil (Previous Year Rs. Nil).

35. The Company has been sanctioned non fund based credit facilities of Rs. 1100 lacs by Punjab National Bank Limited and Rs. 500 lacs by HDFC Bank Ltd.. Non fund based facilities are secured by hypothecation of entire current assets of the Company present and future, and further secured by -

- Hypothecation charge over all movables assets, equipments and fixtures of the company located at the Company''s plant at Village Akolia, Pithampur, Distt. Dhar, (M.P.).

- 10% cash margin in the form of term deposit receipts.

- Equitable mortgage on Company''s plant situated at Village Akolia, Pithampur, Distt. Dhar, (M.P.).

- Personal guarantee of others.

36. Leases :

Company as a lessee

i) Amount not included in measurement of lease liability and recognized as expenses in the statement of profit and loss during the year as Rs. 8.07 lacs (Previous Year Rs. 14.83 lacs).

ii) Total cash outflow for short term leasers amount Rs. 8.37 lacs during the year (Previous Year Rs. 14.70 lacs)

The company has adopted Ind AS 116 ''Leases'' effective from April 1,2019 and elect not to apply the requirement of Ind AS 116 since leases are short term leases.

Where company is lessor

The building given on cancellable operating lease are included in Property, Plant and Equipment.

The aggregate amount of operating lease income recognized in the Statement of Profit and Loss is Rs. 18.00 lacs (Previous Year Rs. 18.00 lacs).

37. Employee Benefit :

(A) Defined contribution plans

In respect of defined contribution plans, an amount of Rs. 4.29 lacs (Previous Year: Rs. 5.14 lacs) towards employer contribution to provident fund and Rs. 0.83 lacs (Previous Year : Rs. 0.92 lacs) towards employer contribution to ESIC and admin. charges in respect of PF Rs. 0.20 lacs (Previous Year : Rs. 0.21 lacs) have been recognised in the statement of profit and loss for the year.

(B) Defined benefit plans

The company provides for gratuity for its employees as per the Payment of Gratuity Act 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The Company has opted for scheme with Life Insurance Corporation of India( "LIC" ) to cover its liabilities towards employees gratuity. The Company also carries out Actuarial valuation of gratuity using Projected Unit Credit Method as required by Ind As - 19 and the difference between fair value of plan assets and liability as per actuarial valuation as at the year end is recognised in financial staetement as assets / liabilities.

Inherent Risks

The plan is of a final salary defined benefit in nature which is sponsored by the Company and hence it underwrites all the risks pertaining to the plan. In particular, there is a risk for the Company that any adverse salary growth or demographic experience or inadequate returns on underlying plan assets can result in an increase in cost of providing these benefits to employees in future. Since the benefits are lump sum in nature the plan is not subject to any longevity risks.

(C) LEAVE ENCASHMENT

The liability in respect of leave encashment is determined using actuarial valuation carried out as at Balance Sheet date. Actuarial gain and losses are recognized in full in statement of Profit and Loss for the year in which they occur.

Liability on account of Leave Encashment as at the year end Rs. 5.47 lacs (Previous Year Rs. 4.25 lacs).

48. Financial risk management objectives and policies

In its ordinary operations, the companies activities expose it to the various types of risks, which are associated with the financial instruments and markets in which it operates. The company has a risk management policy which covers the foreign exchanges risks and other risks associated with the financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the board of directors. The following is the summary of the main risks:

a) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates (currency risk) and interest rates (interest rate risk), will affect the companies income or value of it''s holding of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

i) Interest rate risk

Interest rate risk is the risk the the fair value or future cash flow of a financial instrument will fluctuate because of changes in market interest rate. Fair value interest rate risk is the risk of changes in fair value of fixed interest bearing financial instrument because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing financial instrument will fluctuate because of fluctuations in the interest rates.

The Company''s exposure to the risk of changes in market interest rates relates primarily to the borrowing from banks and others. Currently company is not using any mitigating factor to cover the interest rate risk.

ii) Foreign currency risk

The Company enters into transactions in currency other than its functional currency and is therefore exposed to foreign currency risk. The Company analyses currency risk as to which balances outstanding in currency other than the functional currency of that Company. The company enters in to derivative financial instrument such foreign currency forward contract and option contracts to mitigate the risk of changes in exchange rate on foreign currency exposure.

(b) Credit risk

Credit risk is the risk that arises from the possibility that the counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Financial assets that are subject to such risk, principally consist of trade receivables, Investments and loans and advances. None of the financial insturments of the company results in material concentration of credit risk. Financial assets are written off when there is no reasonable expectation of recovery, however, the Company continues to attempt to recover the receivables. Where recoveries are made, these are recognised in the Statement of Profit and Loss. The impairment for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company''s past history, existing market conditions as well as forward looking estimates at the end of each balance sheet date.

Trade and other receivables

To Manage trade and other receivables, the company periodically assesses the financial reliability of customers, taking in to account the financial conditions, economic trends, analysis to historical bad debts and ageing of such receivables."

Investments

"InvestmentsThe Company limits its exposure to credit risk by generally investing in liquid securities and only with counter-parties that have a good credit rating. The Company does not expect any losses from non-performance by these counter-parties apart from those already given in financials, and does not have any significant concentration of exposures to specific industry sectors or specific country risks."

Cash & Cash Equivalents

The Company holds cash & cash equivalents with credit worthy banks of Rs. 193.18 lacs as at 31st March, 2024 (Rs.85.62 lacs as at 31st March, 2023). The credit worthiness of such banks is evaluated by the management on an ongoing basis and is considered to be good.

(c) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company has obtained non-fund based working capital line from bank. The company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, process and policies related to such risk are overseen by senior management. Management moniters the company''s net liquidity position through rolling forecasts on the basis of expected cash flows.

Capital Management

For the purpose of the Company''s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders of the Company. The Company''s objective when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns to shareholders and other stake holders.

The Company manages its capital structure and makes adjustments in light of changes in the financial condition and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders (buy back its shares) or issue new shares.

No changes were made in the objectives, policies or processes for managing capital during the year ended 31^st March, 2024 and 31^st March, 2023.”

* Excludes Investment in Partnership Firm Rs. 304.54 Lacs (Previiouys Year NIL)

To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into three levels prescribed under the Ind AS. An explanation for each level is given below.

Level 1:Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.”

52. The provisions related to Corporate Social Responsibility (CSR) under section 135 of the Companies Act, 2013 and rules made thereunder are not applicable to the Company.

53. Additional Regulatory Information

i. The company has not granted Loans or Advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are: (a) repayable on demand or (b) without specifying any terms or period of repayment.

ii. The company neither have any Benami property nor any proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

iii. The company is not declared wilful defaulter by any bank or financial Institution or other lender.

iv. The company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

v. The company has not made any investments till 31st March, 2024 in subsidiary company hence compliance with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable.

vi. (A) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries;(B) The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries."

vii. The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

viii. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

ix. The Company has borrowings from banks or financial institutions on the basis of security of current assets.Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts.

x. There were no registration of charge or satisfaction of charge is pending for registration with ROC.

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Mar 31, 2015

COMPANY INFORMATION

Sarthak Industries Ltd. (Formerly known Avanti LPG (India) Ltd. and initially known Malav Metals Pvt. Ltd.) is a public limited company incorporated on 23.12.1982. The Company is engaged in manufacturing of LPG Cylinders at works situated at Industrial Area, Pithampur, Dist. Dhar (M.P.) The LPG Cylinders are supplied to Oil Companies like Indian Oil Corporation Ltd., Hindustan Petroleum Corporation Ltd. and Bharat Petroleum Corporation Ltd. and also to private companies. Apart from this, Company is also engaged in trading of agri-commodities, Mining and Mineral Based Industry on opportunity basis. The Company is listed with the Bombay Stock Exchange (BSE) and MP Stock Exchange (MPSE).

1. The company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share. The dividend if any, proposed by the Board of Directors is subject to the approval of shareholders, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

2. Pursuant to amalgamation of Gloryshine Property Developers Pvt Ltd (Transferor Company) into and with the company, approved by the shareholders of the company and sanctioned by Hon'ble High Court at Mumbai on 21st October 2011, the company has issued and allotted 14,00,000 equity shares of Rs. 10 each fully paid up on 5th December 2011, to the shareholders of transferor company for consideration otherwise than in cash.

3. During the period of five years immediately preceding the Balance Sheet date as at 31st March, 2015, the company has not:

a) allotted any shares as fully paid up by way of bonus shares,

b) bought back any shares.

Disclosure as per AS-15 (Revised) "Employee Benefits"

4. (A) GRATUITY

The employees gratuity is defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected Unit Credit Method, which recognize each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

(B)LEAVE ENCASHMENT

The liability in respect of leave encashment is determined using actuarial valuation carried out as at Balance Sheet date. Actuarial gain and losses are recognized in full in statement of Profit and Loss for the year in which they occur.

Liability on account of Leave Encashment as at the year end Rs. 3,11,696 (Previous Year Rs. 5,60,192).

(Amount in Rs.)

2014-2015 2013-2014

5. Contingent Liabilities and Commitments

A. Contingent Liabilities

a) Sales Tax, CCI and other demand disputed 67881175 68567037 in appeals (Amout deposited Rs. 19963039 (Previous Year Rs. 19964039))

b) Corporate Guarantee given on behalf of others 90000000 90000000

B. Commitments Nil Nil

6. In the opinion of the Board of Directors the current assets, loans and advances have value on realization in the ordinary course of business, at least equal to the amount at which they are stated in the Balance Sheet. The company has made adequate provision for all known liabilities.

7. Earlier years accumulated unprovided Depreciation on Fixed Assets Rs. Nil (Previous year Rs. 4044436)

8. Trade Payable includes Bills payable Rs. 61249533 (Previous Year Rs. 85422553).

9. Leases : Operating Leases Where Company is lessee

The Company has taken various premises under operating leases with these are renewable on periodic basis at the option of both lessor and lessee. The aggregate amount of operating lease payments recognized in the statement of profit and loss is Rs.1628442 (Pre.Year Rs.1103241). The company has not recognized any contingent rent as expense in the statement of profit and loss.

Where company is lessor

The assets given on operating leases by the Company are included in fixed assets. The lease rentals recognized as income in the statement of profit and loss on a straight line basis over the lease term. Costs, including depreciation are recognized as an expense in the statement of Profit and loss. Initial direct costs are recognized immediately in the statement of Profit and loss. The company has not recognized any contingent rent as income in the statement of profit and loss.

The aggregate amount of operating lease income recognized in the Statement of Profit and Loss is Rs. 30,57,852 (Previous Year Rs. 29,12,240).

10. Lease hold land allotted by IDA to the company included in stock in trade, possession of which have been hand over but lease deed of the same is yet to be executed pending full payment on allotment.

11. Related Party Disclosure :

a. Key management personne

Name Designation

Mr. Virendra Kumar Gupta Executive Director

Mr. Yogender Mohan Sharma Whole Time Director

Name Remarks

Mr. Virendra Kumar Gupta Ceased w.e.f. 22.05.2014

Mr. Yogender Mohan Sharma Appointed w.e.f. 15.07.2014

b. Other Party - Associate

Giriraj Buildcon Company is a Partner

12. Capital work-in-progress represents Building under construction of Rs 94,973 (Previous Year Rs. 94,973) and Plant and Machinery under installation of Rs 6,44,201 (Previous Year Rs. 6,44,201).

13. Previous year's figures are regrouped or rearranged wherever considered necessary to make them comparable with current year's figures.

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Mar 31, 2014

COMPANY INFORMATION

Sarthak Industries Ltd. (Formerly known Avanti LPG (India) Ltd. and initially known Malav Metals Pvt. Ltd.) is a public limited company incorporated on 23.12.1982. The Company is engaged in manufacturing of LPG Cylinders at works situated at Industrial Area, Pithampur, Dist. Dhar (M.P.) The LPG Cylinders are supplied to Oil Companies like Indian Oil Corporation Ltd., Hindustan Petroleum Corporation Ltd. and Bharat Petroleum Corporation Ltd. and also to private companies.Apart from this, Company is also engaged in trading of agri-commodities, Mining and Mineral Based Industry on opportunity basis. The Company is listed with the Bombay Stock Exchange (BSE) and MP Stock Exchange (MPSE).

2013-2014 2012-13 1 Contingent Liabilities and Commitments (Amount in Lacs)

1 Contingent Liabilities

a) Outstanding Bank guarantee 80.64 115.62

b) Sales Tax, CCI and other demand disputed in appeals 486.03 480.85

c) Corporate Gurantee given on behalf of others 900.00 900.00

2 Commitements Nil Nil

3 In the opinion of the Board of Directors the current assets,loans and advances have value on realisation in the ordinary course of business, at least equal to the amount at which they are stated in the Balance Sheet. The company has made adequate provision for all known liabilities.

4 Earlier years accumulated unprovided Depreciation on Fixed Assets Rs. 4044436 (previous year Rs. 4044436).

The Company has availed in earlier year the benefit of Sales Tax deferment scheme as per terms & conditions of Notification No. 3-32-94-ST-V-(5) dated 28/2/95 issued by department of Commercial tax, Govt. of MP. has been deferred and carried forward as unsecured loan from Govt. of Madhya Pradesh. The necessary exemption / deferment certificate is yet to be received from the concerned authorities. The Company moved writ petition before the Hon''ble High Court, Indore to get exemption certificate which was allowed against state order of MP High Court bench, Indore, the State Level Committee has moved a writ appeal before the Hon''ble division bench, MP High Court bench at Indore no. 168/2008 which is disposed of by the Hon''ble High Court and being State Govt. 30 not challenged the same, the order of the Hon''ble High Court in Writ Petition become final. Now Company is in process of getting exemption certificate from Commercial Tax Department, Madhya Pradesh.

5 Trade Payable includes Bills payable Rs. 85422553 (Previous Year Rs. 55400391).

6 Leases : Operating Leases Where Company is lessee

The Company has taken various premises under operating leases with these are renewable on periodic basis at the option of both lessor and leasee. The aggregate amount of operating lease payments recognized in the statement of profit and loss is Rs.1103241 (Pre.Year Rs.1219001). The company has not recognized any contingent rent as expense in the statement of profit and loss.

Where company is lessor

The assets given on operating leases by the Company are included in fixed assets.The lease rentals recognized as income in the statement of profit and loss on a straight line basis over the lease term. Costs, including depreciation are recognised as an expense in the statement of Profit and loss. Initial direct costs are recognised immediately in the statemetn of Profit and loss. The company has not recognized any contingent rent as income in the statement of profit and loss.

7 Lease hold land alloted by IDA to the company included in stock in trade, possession of which have been hand- over but lease deed of the same is yet to be executed pending full payment on allotement.

8 The financial statements have been prepared in line with the requirements of Revised Schedule VI of Companies Act, 1956 as introduced by the Ministry of Corporate Affairs from the financial year ended on 31st March 2012. Accordingly, assets and liabilities are classified between current and non-current considering 12 month period as operating cycle.

9 Previous year''s figures are regrouped or rearranged wherever considered necessary to make them comparable with current year''s figures

10 Company information, Significant Accounting policies and practices adopted by the Company are disclosed as under.

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Mar 31, 2013

1 In the opinion of the Board of Directors trie current assets.ioans and advances hsva value on realisation In the ordinary course of business, at least equal to tho amount at which they art stated In the Balance Sheet. The company has made adequate provision for all known liabilities.

2 EarBer years accumulated unprovided Depreciation on Fixed Assets R». 4044436 (previous year Rs. 4044436).

3 The Company has availed in earlier year the benefit of Sales Tax deferment scheme as per terms & conditions of Notification No. 3-32-94-ST-V-{5) dated 2672/95 Issued by department of Commercial tax, Govt, of M.P. has been deferred and carried forward as unsecured loan from Govt, of Madhya Pradesh. The necessary exemption / deferment certificate Is yet to be received from the concerned authorities. The cJrnpany moved writ petition before the Hontrte High Court, Indore to get exemption oertiftcata which was allowed against state order of MP High Court bench, Indore, the State Level Committee has moved a writ appeal before the Hon''ble division bench, MP High Court bench at Indore no. 168/2008 which is pending for further order.

4 Sundry creditors includes Bills payable Rs. 55400381 (Previous Year 39940144),

5 Leases: Operating Leases '' Where Company Is lessen

The Company has taken various premises under operating leases With these are renewable on periods basis at the option ol both lessor and leasee. The aggregate amount of operating lease payments recognized in the statement of profit and loss is Rs.1201501 (Pre.Year Rs.648633 ). The company has not recognized any contlng*"* wit *» expense In the statement of profit and toss. Total future lease rental payable as al balance sheet date

Where company Is lessor

The assets given on operating leases by the Company are included In fixed assets/The lease rentals recognized «s income in 8w statement of profit and loss on a straight line basis over the lease term. Costs, including depreciation are recognised as an . expense In the statement of Profit and loss, Initial direct costs are recognised Immediately in the statemetn of Profit and loss. Ths company has not recognized any contingent rent as income in the statement of proft and loss.

The agreegate amount of operating lease income.reoognised In the Statemetn of Profft and Loss is Rs. 2684040 (Pre year Rs. 1833300). Total future lease rental receivable as at balance sheet date

6 a. Trade Payables includes Rs. Nil (Previous Year Nil) amount''due to micro smalt and medium enterprises registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) Act,

b. The details of amount outstanding to Micro, Small and Medium Enterprises are as under:

7 The company has transferred the land of Rs. 348255436 being hetd as stock In trade to fixed assets during the y«8f.

8 The financial statements have been prepared In One with the requirements of Revised Schedule VI of Companies Act, 1956 M Introduced by the Ministry of Corporate Affaire from the financial year ended on $1" March 3012. Accordingly, assets and (abflttiaa ant classified between current and non-current considering 12 month period «t.op*r*tir»8 cydft.

9 Previous year''s flgucea aw regrouped or rearranged wherever considered ne«s»ary tomato them corirawbtewlhcuflwityesrt figures

10 Current year''s figures are for twelve month* ended on 31.03.2013 where a* prevtowyaart flgurat are tor rtlna month* ending 31.03.2012.

11 Company information, Significant Accounting policies and practices adopted by the Company are disclosed in the statement annexed to these financial statements as Annexure A.

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Mar 31, 2012

1.1 The company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding._

1.2 Pursuant to amalgamation of Glorishine Property Developers Pvt Ltd (Trasferor Company) into and with the company, approved by the shareholders of the company and sanctioned by Hon'ble High Court at Mumbai on 21st October 2011, the company has issued and allotted 1400000 equity shares of Rs. 10 each fully paid up on 5th December 2011, to the shareholders of transferor company for consideration otherwise than in cash.

2011-2012 2010-2011 3 Contingent Liabilities (Amount in Lacs)

a) Bank guarantee 114.56 62.84

b) Disputed liabilities not acknowledged as debts 519.83 602.49

4 In the opinion of the Board of Directors the current assets,loans and advances have value on realisation in the ordinary course of business, at least equal to the amount at which they are stated in the Balance Sheet. The company has made adequate provision for all known liabilities.

5 Earlier year accumulated unprovided Depreciation on Fixed Assets Rs. 4044436 (previous year Rs. 4044436)

6 The Company has availed in earlier year the benefit of Sales Tax deferment scheme as per terms & conditions of Notification No. 3- 32-94-ST-V-(5) dated 28/2/95 issued by department of Commercial tax, Govt. of M.P. has been deferred and carried forward as unsecured loan from Govt. of Madhya Pradesh. The necessary exemption/deferment certificate is yet to be received from the concerned authorities. The company moved writ petition before the Hon'ble High Court, Indore to get exemption certificate which was allowed against state order of MP High Court bench, Indore, the State Level Committee has moved a writ appeal before the Hon'ble division bench, MP High Court bench at Indore no. 168/2008 which is pending for further order.

7 Balance of Creditors, Debtors, Deposits, Advances are partly confirmed

8 Sundry creditors includes Bills payable Rs. 39940144 (Previous Year 71477714).

9 Leases : (where Company is lessee Operating Lease

The Company has taken various premises under operating leases with no restrictions and are renewable / cancelable at the option of either parties. There is no escalation clause in the lease agreement. There is no sub-leases. There are no restrictions imposed by lease arrangements. The aggregate amount of operating lease payments recognized in the statement of profit and loss is Rs.848633 (Pre.Year Rs.1395000 ). The company has not recognized any contingent rent as expense in the statement of profit and loss

10 The company has not received any information from "Suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amount unpaid as at the year end together with interest paid / payable under this act have not been given.

11 Disclosure as per AS-15 (Revised) "Employee Benefit'

Defined Benefit Plan

The employees gratuity is defined benefit plan. The present value of obligation is determined based on actuarial valauation using the projected Unit Credit Method, which recognize each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment recognized in the same manner as gartuity.

12 Out of investment in equity shares of Anik Industries Limited, 10000 equity shares are pleged to Motilal Oswal Securities Ltd. aaainst loan.

13 Lease hold land alloted by IDA to the company included in current assets, possession of which have been hand- over but lease deed of the same is yet to be executed pending full payment on allotemen

14 The financial statements have been prepared in line with the requirements of Revised Schedule VI of Companies Act, 1956 as introduced by the Ministry of Corporate Affairs from the financial year ended on 31st March 2012. Accordingly, assets and liabilities are classified between current and non-current considering 12 month period as operating cycle. Consequently, the company has re-classified previous year figures to confirm to this year's classification

15 Current year's figures are for nine months ended on 31.03.2012 where as previous year's figures are for fifteen months ending 30.6.2011.

16 Company information, Significant Accounting policies and practices adopted by the Company are disclosed in the statement annexed to these financial statements as Annexure A

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Mar 31, 2010

2009-2010 2008-2009

1. CONTINGENT LIABILITIES (Amount in Lacs)

a) An amount of counter guarantee 44.00 45.08 given by bank to the company

b) Disputed liabilities not acknowledged as debts 130.09 130.09

c) Corporate guarantee given on behalf of others 850.00 850.00

2. Balance of Creditors, Debtors, Deposits, Advances are partly confirmed.

3. Earlier year accumulated unprovided Depreciation on Fixed Assets Rs. 4044436 (previous year Rs. 4044436).

4. The Company has availed in earlier year the benefit of Sales Tax deferment scheme as per terms & conditions of Notification No. 3-32-94-ST-V-(5) dated 28/2/95 issued by department of Commercial tax, Govt. of M.P. has been deferred and carried forward as unsecured loan from Govt. of Madhya Pradesh. The necessary exemption / deferment certificate is yet to be received from the concerned authorities. The company has moved an application to Honble Supreme Court of India for grant of exemption certificate, however company has provided for sales tax liability in the books.

5. In the opinion of the Board of Directors the current assets,loans and advances have value on realisation in the ordinary course of business, at least equal to the amount at which they are stated in the Balance Sheet. The company has made adequate provision for all known liabilities.

6. Sundry creditors includes Bills payable Rs. 26645524 (Previous Year 13818386).

7. Leases : (where Company is lessee) Operating Lease

The Company has taken various commercial premises under Cancellable operating leases. These lease agreements are normally renewed on expiry.

8. There are no delay in payment to Micro, Small and Medium enterprises as requried to be disclosed under Micro, Small and Medium Enterprises Development Act, 2006. The information given in schedule H current liabilities regarding Micro, Small and Medium enterprises has been determined to the extent such parties have been identified on the basic of information available with the company. This has been relied upon by the auditors.

9. Member of their AGM held on 30th September, 2009 have resolved to increase the authorised capital from Rs. 10.00 cror to 12.00 crore wef 30.09.09. It was observed that the form no. 5 and other documents in respect of the above are yet to be filed with competent authorities and provision for registration fees Rs. 100000 and stamp duty Rs. 40000 is also not made in the accounts.

10. Previous years figures have been rearranged and regrouped wherever necessary